Publication: Output-Based Aid in Colombia : Connecting Poor Households to Natural Gas Service
Date
2007-11
ISSN
Published
2007-11
Author(s)
Abstract
Natural gas connections could bring
substantial benefits to poor households in Colombia.compared
with other fuels typically used for cooking, natural gas is
safer, less expensive, and less environmentally damaging.
But even though gas is more affordable, connection fees can
put the cost of switching to this fuel out of reach for poor
families. The situation in Colombia, with families unable to
afford connection fees but able to pay monthly gas service
bills, is well suited to the one-time use of output
measurable outputs. The Global Partnership on Output-Based
Aid (GPOBA) subsidy is designed to make each connection
economically feasible while still requiring beneficiary
families to make a substantial financial contribution. The
project serves as a pilot program, demonstrating a model
that regional gas distribution companies can replicate
throughout Colombia to speed access to piped natural gas for
poor households. By transferring performance risks to
privately held regional distribution companies, GPOBA's
output-based subsidy approach provides incentives for
quality work and timely project completion. GPOBA's
effort in Colombia is an example of how output-based aid can
increase accountability and leverage the strengths of
private firms to produce tangible results.
Citation
“Mandri-Perrott, Cledan; Patella, Dominic. 2007. Output-Based Aid in Colombia : Connecting Poor Households to Natural Gas Service. OBApproaches; Note No. 17. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/9beade31-05f0-5019-9065-47da9a0f4dcb License: CC BY 3.0 IGO.”